On short term basis Bitcoin prices might be sweet, but professor Kenneth Rogoff who's an Harvard economist has an ill prediction for the next ten years.
During an interview this week, prof Rogoff suggested that in the next ten years, Bitcoin will probably be worth only a small fraction of what it’s worth today. As of today, Bitcoin is around $9k per coin.
Being interviewed by CNBC, Rogoff predicts that government regulation would be a trigger for the drop in bitcoin prices, but he acknowledged that it would not happen overnight it would only take time to develop a global cadre of regulation. Prof Rogoff stated:
“Even if the U.S. cracks down on it and China cracks down, but Japan doesn’t, people will be able to still launder money through Japan.”
He further commented:
“If you take away the possibility of [Bitcoin] money laundering and tax evasion, its actual uses as a transaction vehicle are very small".
From Rogoff comments, he suggested that at the moment the key to bitcoins success are money laundering and tax invasion.
When on the other hand bitcoin has been associated with unlawful transactions, the estimates of digital currency used in illegal activities varies in proportion. The co-founder and president of Blockchain Intelligence Group, Shone Anstey reckoned that in 2016 the level of illegal transactions in bitcoin had fallen to 20 percent and in 2017 it was "significantly less than that".
One has to concede to the idea that the wholeness of the internet would need to be regulated before transactions with Bitcoin were impossible.
According to Rogoff, one reason authorities have been slow in regulating bitcoin is due to the prospect of the technology behind the digital currency.
The economist has pointed to cryptocurrency prices falling on several occasions. In December last year, before bitcoin sold off prof Rogoff spoke to CNBC last October that prices of the digital currency would "collapse" amid strives by governments to regulate the space.
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@ebighejosiah